The Truth About Strata; what
purchasers really need to know.
Part 1
Are our owners corporations complying
with the law?
The truth about strata is
…we are asleep at the wheel
The strata wheel of (mis)fortune ?
Owners decide
(or not)

Purchasers buy

Lawyers advise

Managers act

Inspectors
report
Let’s take a building somewhere
• 15 res apartments
• Part of a mixed use
stratum (separate OC’s)
• Balance commercial
and...
The seven things the owners must do
meet

record

manage

comply
insure

maintain

$ave
The duty to meet (s.14)
• Signifies developer control
• Defines period for holding First
Initial period AGM

First AGM

AG...
The duty to manage ( s 61)
Pets

Parking

Privileges
Common
property
The duty to maintain (s.62)
• Reasonable steps
• Best endeavors
• Reasonable care …

All fail the test of strict
liability...
The duty to $ave ( s. 76)
Year

Plan

Reality

2007

-

-

2008

-

$ 20 000

2009

-

$ 30 000

2010

$ 44 572

$ 26 000
...
The duty to insure ( s.83)
Expectations
of cover

Reality of
exclusions
The duty to record (s. 100)

Soft copies

Hard copies
The duty to comply (s 12)
The truth about this strata
Disclosed

Undisclosed
Purchasers remain dazed and confused
Owners corporations

tight

ineffective

Strata managers

underpaid

beyond scope

St...
How we propose to help ?

Educate
inspectors
Unite
inspectors

Better
informed
purchasers
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The Truth About Strata Are Owners Really Complying With the Law

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strata act, strata mediation, body corporate fees, owners corporation fees, levy recovery, levy collection, strata title, building and construction law, strata negotiation, mediation strata, company title law, strata law, strata lawyers, building defects, by-laws, bylaws, litigation, strata, nsw strata law, victorian strata law, ACT strata law, company title

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The Truth About Strata Are Owners Really Complying With the Law

  1. 1. The Truth About Strata; what purchasers really need to know. Part 1 Are our owners corporations complying with the law?
  2. 2. The truth about strata is …we are asleep at the wheel
  3. 3. The strata wheel of (mis)fortune ? Owners decide (or not) Purchasers buy Lawyers advise Managers act Inspectors report
  4. 4. Let’s take a building somewhere • 15 res apartments • Part of a mixed use stratum (separate OC’s) • Balance commercial and retail lots • Onsite management • Res OC levies $ 1550 per quarter • 4 years old
  5. 5. The seven things the owners must do meet record manage comply insure maintain $ave
  6. 6. The duty to meet (s.14) • Signifies developer control • Defines period for holding First Initial period AGM First AGM AGMs • Check developer handover • Defines the AGM meeting window • Check requirements for last notice of AGM • Look for next AGM if the date is close to avoid nasty surprises
  7. 7. The duty to manage ( s 61) Pets Parking Privileges Common property
  8. 8. The duty to maintain (s.62) • Reasonable steps • Best endeavors • Reasonable care … All fail the test of strict liability for repair and maintenance of common property in NSW; Seiwas case.
  9. 9. The duty to $ave ( s. 76) Year Plan Reality 2007 - - 2008 - $ 20 000 2009 - $ 30 000 2010 $ 44 572 $ 26 000 2011 $47 742 - Balance end 2010 $87 358 $ 61 249 Compliance (under 41.6%) ( short $ 26 107) ( 29.8 %)
  10. 10. The duty to insure ( s.83) Expectations of cover Reality of exclusions
  11. 11. The duty to record (s. 100) Soft copies Hard copies
  12. 12. The duty to comply (s 12)
  13. 13. The truth about this strata Disclosed Undisclosed
  14. 14. Purchasers remain dazed and confused Owners corporations tight ineffective Strata managers underpaid beyond scope Strata inspectors unsupported at risk
  15. 15. How we propose to help ? Educate inspectors Unite inspectors Better informed purchasers

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